 Public Service Commission (MPSC) Chair Peter LARK said he is leaning toward a statewide 21st Century Energy plan that ups the state's alternative energy production from 3 percent to 10 percent by 2015, pushes energy conservation and brings aboard the "cleanest coal fire plant" available to take care of the expected 1.2 percent increase in energy consumption.Speaking to the Lansing Regional Chamber of Commerce's Economic Club this afternoon, Lark said he reserves the right to change his mind, but as the person tapped by Gov. Jennifer Granholm to develop Michigan's long-term energy blueprint, he said the state needs to become more self-sufficient on the energy production front.
Instead of relying on the potentially pricey Carmel, Ind.,-based Midwest Independent Transmission System Operator, Inc. (MISO) for future energy needs, Lark hinted that he would ask the Legislature to pass legislation that would require Consumers Energy and Detroit Edison to invest in more solar, wind and other renewable energy options.
"To the extent that the need for new fossil-fueled generation can be reduced by so-called 'green power,' windmills and solar, for example, or by energy efficiency, we as a state must do so," Lark said.
Lark is required by Executive Order 2006-02 to deliver a 21st Century Energy plan to the Governor's desk by the end of the year. He said the Governor's request "couldn't be more timely nor its goals more worthy."
He began his speech to the Economic Club praising the state's approach to energy restructuring in 2000, which opened the door to competition in the electrical market. Michigan's commercial and industrial customers are experiencing comparatively lower rates among the nation's largest states. Also, the state's electric industry environment is notably more stable than those states with lower rates, he said.
In order to keep prices stable, Lark said he's looking at Michigan's energy needs 10, 15 and 20 years down the road. Last year, energy forecasters saw energy consumption increasing 2 percent a year. But with the state's economy moving away from manufacturing, these estimates have been scaled down to 1.2 percent.
He said he'd like renewable energy and conservation to make up that increase, but Lark acknowledged that that's not likely. And because of concerns he has about nuclear energy, he said he's leaning toward recommending the construction of the state's first coal-fired plant in 20 years.
Lark said he understands that advancements in nuclear energy make it a cleaner option than coal, but he noted two concerns.
First, Michigan is having problems finding places to store the nuclear waste it already produces. Washington is changing the rules of what was supposed to be the national depository of nuclear waste in Yucca Mountain, Nevada. Some of the waste is being locked into what is known as "dry storage" along the Lake Michigan coast, but that can't be a long-term answer for a new plant.
Second, he said recent nuclear power plant construction efforts from Consumers Energy and DTE Energy have experienced a combined $3.5 billion in cost overruns, which means "we'll all pay for it" with ultimately higher energy bills.
Of course, nobody wants a nuclear power plant in their backyard with the disasters at Three Mile Island and Chernobyl still relatively fresh in the minds of the public, which makes finding a home for a new plant a problem. Lark didn't rule out suggesting more nuclear power in the future. He said it could be a next step, but his preference at this point is the "cleanest coal-fired" plant possible.
In giving the Lansing Chamber a sneak peak at his developing energy plan, Lark recognized that stepping up renewable energy efforts likely would cost consumers more in the long run, which will be a problem for some. However, Lark said a long-term strategy that weans the state off the fossil-burning fuels is in the economic best interests of the state.
Michigan already gets 3 percent of its electricity from renewable sources such as hydro-electricity, wood-burning plants and landfill gases. This portfolio could be expanded if more windmills are put in the windier places in the state.
Lark noted that new technology is being explored that would allow solar energy to be gathered on cloudy days - something that would be needed to make that type of energy gathering feasible in Michigan.
The MPSC chair acknowledged that the Supreme Court has ruled Lark doesn't have the authority to require the state's main electricity provider to obtain a certain percentage of energy from renewable energy sources. Such mandates would need to come from the Legislature. While he didn't say it directly, the implication was that he would ask the Legislature to do it.
On the energy conservation front, Lark noted that he would be recommending something known as "smart metering," which allows homeowners and businesses to see how using electricity at different times of the days is actually cheaper for them. For example, drying clothes at 10 p.m. would save a household money as opposed to running the dryer at 10 a.m. because the electricity isn't being used during peak times.
October 5, 2006 |
